1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mina [271]
3 years ago
12

Shepherd Corporation had earnings and profits of $500,000 before distributions. Due to economic conditions, Shepherd, in partial

liquidation, distributed land having an adjusted basis of $67,500 and a fair market value of $75,000 to Ms. Rinnie for 95% of her interest in Shepherd. Ms. Rinnie’s adjusted basis in the stock at the time of the distribution was $90,000. What is the amount of Shepherd Corporation’s recognized gain or loss?
Business
1 answer:
Aleonysh [2.5K]3 years ago
8 0

Answer:

amount recognized gain = $7500

Explanation:

given data

profits = $500,000

basis = $67,500

fair market value = $75,000

interest = 95%

distribution = $90,000

to find out

amount of Shepherd Corporation’s recognized gain or loss

solution

we know that here effect of non liquidating distributions on corporation is gain are recognised on property that is express as

amount recognized  = fair market value  - Basis  .................1

put here value we get

amount recognized = $75,000 - $67,500

amount recognized gain = $7500

You might be interested in
Thousands of developers, lenders, and investors were victims of deflation in commercial real estate beginning in the:?
exis [7]

Thousands of developers, lenders, and investors were victims of deflation in commercial real estate beginning in the 1980s and in 2007-2009.

  • Private property in the form of land and buildings is referred to as real estate. Real estate comprises all resources on the land, such as water and minerals, and can be used for residential, commercial, or industrial purposes.
  • Homes, workplaces, retail establishments, healthcare facilities, farms, and other structures are all instances of real estate. Real estate includes both the undeveloped area outside of our city and the road that takes us there. Due to the fact that the asset is tangible by nature, many individuals like working with and investing in it.

To know more about Real estate visit:
https://brainly.in/question/58615
#SPJ4


7 0
1 year ago
When Jenna Henderson works overtime (any hours over 40 hours a week), she us paid 1.5 times her regular hourly rate. Last week,
Aleonysh [2.5K]
Jenna earned $474.50 last week.
3 0
3 years ago
Read 2 more answers
What is important to consider about a facility for a business?
Mamont248 [21]

It is important to consider some factors when choosing a facility for your business. Some critical factors to consider include the following.

  • Location (on well-traveled streets, or tucked away in the country)
  • The interior layout: the amount of space, how it would be subdivided into rooms or work areas to best serve you
  • How it could be constructed or decorated to provide the capabilities and business atmosphere that best suits your operation
  • The exterior: its appearance (and that of surrounding buildings) and the impression that it conveys about your business
  • Provision for necessary features such as parking facilities and loading docks

<h3>What is a Business Facility?</h3>

A Business Facility refers to a building location or portion at which employees perform services for their employer.

It is important to note that a business facility  does not include any workplace or portion of a workplace that also serves as the employee's or employer's personal residence.

Learn more about business facility at  brainly.com/question/12255901

SPJ1

3 0
2 years ago
Consider an economy that is operating at its steady state. an increase in the investment rate in this economy will lead to:_____
andrew-mc [135]

Consider an economy that is operating at its steady state. an increase in the investment rate in this economy will lead to a temporary increase in the growth rate.

In the Solow model, a larger saving rate has no long-term impact on the growth rate. Higher steady-state capital stock and level of output do follow a higher saving rate. The growth rate briefly increases as production changes from a lower to a higher steady-state level. Low rates of saving the result in small capital stock in the steady state and low levels of output in the steady state. Only in the near run do higher savings translate into quicker economic development. Up until the economy reaches its new steady state, an increase in the saving rate causes growth to accelerate.

Learn more about the economy here brainly.com/question/1106682

#SPJ1.

7 0
1 year ago
Toys, Trinkets and More requires a minimum rate of return of 12% on its average operating assets. The toy department currently h
Serggg [28]

Answer:

Residual Income = $6,000

Explanation:

Residual income is the excess income of a firm leftover the opportunity cost of capital or over the desired income.

Given,

The minimum rate of return 12%

Average operating assets = $300,000

Net operating income = $42,000

We know,

Residual Income = Net Operating Income - (Average operating assets x the minimum rate of return)

Residual Income = $42,000 - ($300,000 x 12%)

Residual Income = $42,000 - $36,000

Residual Income = $6,000

6 0
3 years ago
Other questions:
  • What determines the price and the quantity produced of most goods? the availability of substitutes for the goods the quality of
    11·2 answers
  • A portfolio is made up of stocks a, b, c, and d in the proportion of 20%, 30%, 25%, and 25% respectively. the nondiversifiable r
    5·1 answer
  • The degree of a consumer's willingness to adopt new products and services shortly after they have been introduced is known as __
    12·1 answer
  • Marta is interviewing candidates for a position in the Human Resources department at her company. She is deciding who to intervi
    14·2 answers
  • Which of the following is a shortcoming of GDP accounts? Group of answer choices They do not take into account the unemployment
    6·1 answer
  • If a society decides to produce consumer goods from its available resources, it is answering the basic economic question,
    14·1 answer
  • In one hour, the United States can produce 25 tons of steel or 250 automobiles. In one hour, Japan can produce 30 tons of steel
    6·1 answer
  • Answer these questions picture above.<br><br>​
    10·1 answer
  • On August 1, Hanes Co. determines that it cannot collect $150 from a customer. Hanes uses the direct write-off method. Hanes wil
    10·1 answer
  • How is the noncontrolling interest in a subsidiary company calculated as of the end of a reporting period?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!